Obligation of Borrower Clause Samples

The Obligation of Borrower clause defines the specific duties and responsibilities that the borrower must fulfill under the terms of a loan agreement. Typically, this includes requirements such as timely repayment of principal and interest, maintaining adequate insurance on collateral, providing financial statements, and complying with all relevant laws and covenants. By clearly outlining these obligations, the clause ensures that both parties understand the borrower's commitments, thereby reducing the risk of misunderstandings and helping to protect the lender's interests throughout the duration of the loan.
Obligation of Borrower. 6.1.1 Borrower shall use the loan in accordance with Purpose of Loan provided herein and may not divert the fund for any other purposes or use it for any illegal activities. 6.1.2 Borrower shall repay the principal in accordance with the time limit of this Contract.
View SourceView Similar (4)
Obligation of Borrower for the face amount of any Letter of Credit held by Lender and delivered by Borrower in connection with the loan evidenced by the Notes in the event Lender is unable to collect the full amount of said Letter of Credit for any reason. The obligations of Borrower in subparagraphs 1-12 above, except as provided in subparagraphs 10 and 11, shall survive the repayment and satisfaction of the Note and compliance with the terms of this Security Deed. Notwithstanding any provisions herein to the contrary, Borrower shall become personally liable for the entire amount due under the Note (including all principal, interest and other charges) in the event that Borrower (i) violates the covenants set forth in this Security Deed governing the placing of subordinate financing on the Property or (ii) violates the covenants set forth in this Security Deed restricting transfers in the Property or transfers of ownership interests in Borrower.
View Source
Obligation of Borrower. Borrower further represents and warrants that the information memorandum heretofore furnished to Lender, presents fairly the financial projections of the Company at such date, that there has been no material adverse change in such financial condition since that date, that the thermal imaging cameras and related equipment to be purchased pursuant to the Term Loan Agreement are not subject to any claims, liabilities, liens or encumbrances except as previously disclosed to Lender, and that there is neither threatened nor pending any litigation against any Borrower. Borrower shall be in default hereunder in the event (herein called "Event(s) of Default") that:
View Source
Obligation of Borrower. The Borrower shall have the liability of a general endorser with respect to all instruments deposited therein whether or not it shall have endorsed the same. Each deposit made by the Borrower in the Cash Collateral Account shall also be accompanied by a deposit slip or slips clearly indicating proceeds collected from cash sales or inventory, and the proceeds collected from accounts receivable with the same name of each account receivable and the amount collected.
View Source
Obligation of Borrower. 1. Repay the principal capital and interest (including compound interest and default interest) under this contract according to this contract. 2. Bear the relevant fees of credit investigation, evaluation, auditing, appraising, inquiring, searching, registration, notarization and litigation fee, arbitration fee, lawyer fee, traveling cost, transporting cost and the other fees which are paid by the lender for the realization of creditor’s rights. 3. Use the loan according to the purpose stipulated by this contract, no diverting, impropriating or using the loan for the illegal transaction; shall not draw out the capital illegally, transfer assets or take advantage of the related party transaction to avoid the debt under this contract; shall not use the illusory contract of the related parties, and use the notes receivable, account receivables and the other creditor’s rights without the real transactions to discount or cash out at the bank to extract capital and credit.
View Source

Related to Obligation of Borrower

  • Condition of Borrower Each Guarantor acknowledges and agrees that it has the sole responsibility for, and has adequate means of, obtaining from the Borrower and any other guarantor such information concerning the financial condition, business and operations of the Borrower and any such other guarantor as such Guarantor requires, and that none of the Secured Parties has any duty, and such Guarantor is not relying on the Secured Parties at any time, to disclose to it any information relating to the business, operations or financial condition of the Borrower or any other guarantor (each Guarantor waiving any duty on the part of the Secured Parties to disclose such information and any defense relating to the failure to provide the same).

  • Condition of Borrower or Guarantor The insolvency, bankruptcy, arrangement, adjustment, composition, liquidation, disability, dissolution or lack of power of Borrower, Guarantor or any other party at any time liable for the payment of all or part of the Guaranteed Obligations; or any dissolution of Borrower or Guarantor, or any sale, lease or transfer of any or all of the assets of Borrower or Guarantor, or any changes in the shareholders, partners or members of Borrower or Guarantor; or any reorganization of Borrower or Guarantor.

  • Condition of Borrowers Each Guarantor acknowledges and agrees that it has the sole responsibility for, and has adequate means of, obtaining from the Borrowers and any other guarantor such information concerning the financial condition, business and operations of the Borrowers and any such other guarantor as such Guarantor requires, and that none of the Secured Parties has any duty, and such Guarantor is not relying on the Secured Parties at any time, to disclose to it any information relating to the business, operations or financial condition of the Borrowers or any other guarantor (each Guarantor waiving any duty on the part of the Secured Parties to disclose such information and any defense relating to the failure to provide the same).

  • Location of Borrower The Borrower's place of business (or, if the Borrower has more than one place of business, its chief executive office) is located at the address listed under the Borrower's signature on this Agreement.

  • Reaffirmation of Credit Party Obligations Each Credit Party hereby ratifies the Credit Agreement and acknowledges and reaffirms (a) that it is bound by all terms of the Credit Agreement applicable to it and (b) that it is responsible for the observance and full performance of its respective Credit Party Obligations.